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World tin demand projected to increase

| Source: JP

World tin demand projected to increase

JAKARTA (JP): The London-based International Tin Research
Institute Ltd. (ITRI) estimates that world tin consumption will
increase by 20,000 tons in 1997 and 30,000 tons 1998.

The rise is predicted owing to the increased usage of tin
expected in the beverage industry and of lead-free solders in the
electronics industry.

"The usage of tin as an alternative in certain products has
shown significant progress in the last few years," ITRI's
managing director, Rod Bedder, said yesterday.

He said that the world consumption of tin reached 180,000 tons
last year.

"The decline in consumption of tin has now been reversed and
for the first time in the 1990s, the market share of steel
beverage cans in Europe will overtake that of aluminum," he
added.

He said that the use of tin could reduce the cost of beverage
can production by up to 15 percent.

Bedder particularly noted that the growth of canned foods in
China alone is estimated to require an additional 5,000 tons of
tin per annum by the year 2000 to meet the needs of the existing
tin plate manufacturing capacity.

ITRI's supervisory council, which held its third meeting in
Jakarta yesterday, said that in the efforts to re-introduce the
tin plate beverage can into North America, it has called six
major U.S. steel producers to discuss technology transfer
arrangements with the big three European steel producers.

"This initiative is hoped to bring results in the next six to
12 months," he said.

Bedder also said that a worldwide survey of solder suppliers
has shown more than 30 lead-free alloy alternatives are now
available to meet the need of every solder application.

He said that a number of North American and Japanese
electronic multinationals are believed to be on the verge of a
first step into lead-free consumer products.

"All the lead-free alternatives under investigation by ITRI
contain more than 80 percent tin and this represents a potential
increase in world tin consumption of up to 30,000 tons per
annum," he said.

He said that ITRI has now commissioned the first commercial
quantities of pure tin shot for sampling by cartridge
manufacturers, which shows that the material is a perfect
alternative to lead.

Bedder said that with the consumption of lead for shot
estimated at more than 50,000 tons per annum, there will be a
huge potential market for the non-toxic tin alternative to lead.

"On the supply side, we estimated that the global production
will rise by 15,000 to 20,000 tons in the next few years," said
Peter Jackson, a director of PT Koba Tin, who is also a member of
ITRI's supervisory council.

The world supply was estimated at 160,000 tons last year.

Jackson said that in the next 18 months to 24 months some tin
mining companies from Indonesia, Brazil and Australia will
commence commercial production.

"Therefore, we hope that the supply will go in line with the
increase of the demand," he said.

Bedder added that the tin prices on the global market are
likely to remain stable in the next two years.

ITRI, which has conducted research and development into the
uses of tin for the past 70 years, was privatized in January last
year as a result of a change in its funding mechanism. Since then
it has no longer been funded by member countries, but by tin
mining companies.

Yesterday's meeting was attended by major tin producing
companies, including PT Tambang Timah and PT Koba Tin of
Indonesia, Norminco and RGC Limited of Australia, Escoy and
Malaysia Melting of Malaysia, Metallo-Chimique of Belgium, Minsur
S.A. of Peru, Somincor of Portugal and Solo Industries of the
United Arab Emirates. (08)

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